Week 2 Tutorial Questions Solutions

Week 2 Tutorial Questions Solutions - ACCT 1501 2011S1 Week...

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ACCT 1501 2011S1 1 Week 2 Tutorial Questions Solutions Tutorial Questions: DQ1.12, 1.14, 1.16; P1.15, P1.25; C1A (parts 1-7), C1C Discussion Questions 12. Accrual accounting includes the impact of transactions on the financial statements in the time periods where revenues and expenses occur rather than when the cash is received or paid. Cash accounting only accounts for revenues and expenses when cash is paid or received by the enterprise. 14. Term a) Accrual accounting b) Cash accounting Accounts payable Yes No Accounts receivable Yes No Cash Yes Yes Inventory Yes Yes 16. Going Concern Concept The presumption that the entity will continue to operate in the future—it’s not being liquidated. Accounting Period The period of time selected for reporting results of operations and changes in financial position. Accrual Accounting Recognise revenue at the point of sale and recognise expenses when incurred, even though the cash receipt or payment occurs at another time. Monetary
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This note was uploaded on 07/30/2011 for the course ACCT 1501 taught by Professor Helen during the Three '09 term at University of New South Wales.

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Week 2 Tutorial Questions Solutions - ACCT 1501 2011S1 Week...

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